So it all started with an alluring email…
“Ok, help me out here guys. Looking for your input….
Auction.com just called me to confirm that I got the accepted offer. However, they are different from REDC.com where the bid is the bid and you win.
With auction.com the seller has the right to say yes or no within 1-2 weeks. What they want me to do is sign the OTP that they are sending to me and wire them the full amount of 23K. I have 24 hours to complete this. If the seller says yes then it’s a done deal and we proceed.
If the seller says no, then they refund me the money in whole or the seller can counter offer me. This is written in the terms of the agreement…..you know…..the same one that we never read, just check the box, and make the offer 🙂
So……with that said…..how would you guys proceed? Tell them to take a hike? Would you trust them? etc etc.”
Now just so you know, this email came to me within our little Flip VIPs mastermind group I’m lucky enough to be a part of. We email each other privately with deal related questions like this and whatnot.
What followed was a revealing email banter with another of our colleagues – fix-and-flip guy Steve Cavanaugh (LaPleda, MD) – who turns out to be somewhat of an underground expert in the real estate auction arena – both online and off.
Call me intrigued. I’ve done somewhere close to a couple hundred deals, but I’ve never bought one via auction. So I asked Steve if I could call him on the phone for a few and grill him with whatever the heck questions that come to mind.
4 things that happened next…
- He said yes.
- It was awesome.
- I recorded it.
- And posted it for you here 😉
Listen and enjoy…[audio:http://reitips-audio.s3.amazonaws.com/interviews/01-11_cavanaugh_on_auctions.mp3]
The whole shebang’s only around 19 minutes or so, and well worth eavesdropping in on if you’re even remotely interested in gleaning a few choice, firsthand insights into buying real estate via online or offline auctions.
Questions and stuff we talked about…
- Online vs. offline vs. “simulcast” auctions
- How the auction process basically works from the investor’s perspective
- How much liquid capital should you have on hand before bidding?
- How much opportunity do you feel there is in online real estate auctions right now?
- How do you get the best results possible from the auction arena?
- Why you should start out by going in person to the live auctions?
- One thing you should always do at every single auction you attend to identify the players
- Where should you sit at live auctions? (and why it matters)
- What are the minimum qualifications to bid online?
- One big advantage to being there live vs. online: bid increments
- Any favorite auctions of yours? (online and off)
- What about the “buyer’s premium”?
- Tell me about any recent auction deal you scored?
And for anyone who’s interested, I, Steve and 10 other folks do open-line Q&A calls each and every month. And it’s remarkably affordable at only thirty-nine bananas. I just finished mine up for this month – we had around a dozen folks on the line for about an hour and a half. Good times.
Got comments? More questions? Bring it.
Just leave a comment below, and I’ll gladly ee if I can get Steve over to answer ‘em for you.
PS – It snowed last night here. Yep, it rarely happens in Memphis. Pigs must’ve just flown by too.
So I got the girls out and we build snow forts and I coaxed everyone (Kara included) into about a 10 minute snowball fight – YEEEEHAWWWWWW!
So here’s one of the pics we took – Kelsey and I admiring our SNOW FORT OF DOOM. If you wanna see the rest, I posted ’em for you over on the Crackbook page here…